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The Bitcoin price has been increasing since reaching a low of $8,455 on Feb. 26. Both the Wyckoff accumulation method and Elliot wave theory suggest that this increase is a part of a larger correction.

Wyckoff distribution theory states that there is a proportional effect for every cause in the market. Thus, after every accumulation phase, there is a markup, distribution, and finally a markdown phase. More specifically, each phase has its distinct characteristics, which are shown in the tweet below by well-known trader @TraderX0X0, who used this distribution to outline a possible movement for the Bitcoin price. We have previously used this method to predict the price of XRP, DOGE, and BTC.

$BTC

I still believe price is in one large accumulation phase / range hence why I wasn't calling moonshot in Feb.

If we are dropping lower then its a matter of schematic 1 or 2, until invalidated.

Absolutely shall be buying 6s & 7s

FYI – Put the volume profile on yourself! pic.twitter.com/XCUicykTZX

— TraderXO (@TraderX0X0) March 2, 2020

Let’s dive deep into the Bitcoin price action and use this method to attempt to predict its future price.

The Wyckoff accumulation occurs in five phases, which are outlined by the letters A through E. According to it, the Bitcoin price is currently in phase B.

Phase A was initially signaled with the “Selling Climax” on Oct. 24, 2019, which was immediately succeeded by the “Automatic Response.” These values serve to outline the support and resistance areas of the range.

In phase B, the price created slightly lower lows in the “Secondary Test,” which was followed by an increase that was completed at the range highs. If the price continues following this accumulation, the succeeding move is supposed to be a validation of the $9,500 area, followed by a decrease, that marks the beginning of phase C.

In this phase, there are two possible movements, which are outlined by the dashed and solid lines. The dashed line suggests a lower low being created, which would offer the maximum return for investors looking to buy at the level, while the solid line (more common) would create a higher low. The result is the same in both, since BTC is expected to increase afterward.

Phase D is the breakout, with the high above the “Automatic Response” being considered the “Show of Strength,” while phase E takes the price to new territory.

We gave a similar prediction using a five-wave Elliott formation in our previous article.

Let’s see how these two different methods align with each other.

The entire B phase, beginning from the “Secondary Test,” was characterized by a five-wave Elliott formation. It seems as if we are now in the B wave, which is projected to end near $9,450, fitting perfectly with the Wyckoff distribution model.

In addition, the daily RSI is approaching 50 from the way down, so it could be rejected soon, signaling the beginning of the C wave.

To conclude, the BTC price movement since October closely resembles a Wyckoff accumulation pattern. According to it, the price will soon make a high near $9,450 before decreasing toward $7,500 and possibly $6,800, where it is projected to make the final low prior to breaking out.

The post Bitcoin’s Price Movement Predicted Using the Wyckoff Distribution appeared first on BeInCrypto.

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